The Biotech bubble bursting hits Nasdaq and makes it the weaker link in the indices chain.
It all began when
IBB broke below 360$, closing below its Fast SMA line, providing the bearish signal by breaking down the weekly uptrend line (see point 1)
August's declines leadIBB to re-test another weekly uptrend line and the 300$ support zone - This created a rally back towards 360$ that ended when the price was rejected by the 360 structure and the Fast SMA line that flipped roles to resistance.
Now, three week's later,IBB is re-testing the 300$ (currently inside the zone). It is also re-testing the same uptrend that helped it during August.
That is a critical zone for Biotech. The next support zone is near 260$ and below it, the 200 weeks MA waits near 230$.
IfIBB will manage to find the necessary support inside 280-300$ again, it could lead to a rally towards its 50 weeks MA line that should turn to resistance now.
A close above 300$ could be a bullish confirmation signal that we are heading there.
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It all began when
IBB broke below 360$, closing below its Fast SMA line, providing the bearish signal by breaking down the weekly uptrend line (see point 1)August's declines lead
IBB to re-test another weekly uptrend line and the 300$ support zone - This created a rally back towards 360$ that ended when the price was rejected by the 360 structure and the Fast SMA line that flipped roles to resistance. Now, three week's later,
IBB is re-testing the 300$ (currently inside the zone). It is also re-testing the same uptrend that helped it during August. That is a critical zone for Biotech. The next support zone is near 260$ and below it, the 200 weeks MA waits near 230$.
If
IBB will manage to find the necessary support inside 280-300$ again, it could lead to a rally towards its 50 weeks MA line that should turn to resistance now. A close above 300$ could be a bullish confirmation signal that we are heading there.
Follow me on TradingView
Follow my blog: marketzone.tumblr.com/
Subscribe to my newsletters: goo.gl/psNTqg
Nota
IBB reached target level
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Penafian
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Penerbitan berkaitan
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.